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Commercial
   Mediation

 

Commercial (adjective) : 1. of, or engaged in, commerce (all forms of trade and service); 2. intended to produce profit

Mediation (verb) : 1. to act as negotiator or peacemaker between opposing sides in a dispute; 2. to bring about a settlement in this way


Commercial Mediation resolves conflict by focusing on interests.   These matters may be business to business, business to consumer, or between divisions within the same organization.  Commercial Mediation can be applied in any situation where two or more parties are in conflict regarding some aspect of their commercial interaction.

Commercial Mediation is a fast and cost effective way to resolve conflict.  Mediation is expeditious, inexpensive, informal, and flexibe. It is laser-like in how it can focus on the cancer of a problem and cut it out cleanly. Thus leaving the parties to mend and recover most rapidly, resuming their focus on their business.

Commercial Mediation is also the least desrtructive. Adversarial litigation and arbitration can leave parties with negative fallout from extremely high degrees of residual anger and hostility. The collaborative aspects of mediation usually leaves parties with a generally more positive posture for the future. All commercial activity is done in increasingly intimate markets today leaving no good place for 'scorched earth' fallout from a disagreement.

 

Mediation: fast, inexpensive, and constructive conflict resolution. 

It is generally the most more efficient approach to finding a resolution to a conflict.  Parties are motivated to use mediation because it can get them back to the business of doing their business the fastest, the safest, and with the least cost.  Options such as adversarial arbitration and litigation are most costly in terms of time, risk, and money.  These non-collaborative options tend to deflect substantial resources away from the mission of the enterprise.  It is simply good business to try to resolve conflicts with mediation as a first resort, before possibly escalating to more costly methods.

Mediation is not Capitulation:  It just makes good sense.

A proposal to mediate does not necessarily indicate a weak case or a shallow resolve.  Mediation leaves open possible use of ajudication later, whereas other forms of conflict resolution can be quite final and leave appeals extremely difficult. Mediation is often introduced after a suit has already begun at court.  The looming costs of court battles tends to make parties look closer at the cost/benefit aspects of mediation.  Mediation can be used at any point before a decision has been rendered onto the parties by a panel or arbitrators, a judge, or a jury.  In fact, statistics show that anywhere from 80% to 95% of suits brought to court are settled before a decision is made by a tribunal or a court.

Less problems with enforcement.

Mediated settlements have a much higher compliance rate than with adjudicated settlements. As the parties design and compose the settlement themselves, they take ownership in the outcome.  They are not told what to do by a judge or jury: it's their process and outcome. The parties co-author the settlement.  This way their self interests are reflected and respected in the agreement and the outcome.  In litigation and arbitration parties give up their right to autonomy and sovereign self determination: those rights are abrogated onto an authority to tell them what the outcome will be.

In Mediation, the parties actually control their destiny. 

With mediation the parties do not depend on counsel, arbitrators, judges, or a jury for what will happen.  The parties may personally control the outcome of a mediation directly.  That outcome is naturally keyed to their personal self-interest, rather than what a third party's imagination of what that outcome should be.  We recommend parties mediate cases of any substance or import with knowledgeable counsel to preserve and protect all of their legal interests.

In today's business environment, keys to survival and growth of an enterprise are to maximize productivity, to minimize costs, and especially to maximize relationships.  When dealing with conflict situations, both external and internal, mediation is clearly the best choice against these criteria.

How can it work if it's voluntary? 

Parties who have not experienced mediation are often dubious about the potential of successfully applying this collaborative process to their particular conflict(s).  A conflict is, by definition, a situation where a solution to the problem has not yet been found, and alternatives are in competition.  The mediation process helps focus parties on resolving issues rather than advocating for positions.  Mediation succeeds often when neither party imagined any basis for agreement.  When participants experience how they can break through what they viewed as an impasse, they understand the effectiveness of mediation.  They "get it" and understand why people have been mediating conflicts all around the world for thousands of years.

Comparison chart

We offer a Conflict Resolution Method Comparison chart on our FAQ page.  It provides a side by side, aspect by aspect comparison of Mediation with the two other leading types of conflict resolution approaches, Arbitration and Litigation.

 

 

 

 

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